The United States will allocate US$155 million in additional support to Ukraine, the U.S. Embassy in Ukraine says.
"The United States announced today that it will provide US$155 million in additional development funding to Ukraine through the U.S. Agency for International Development (USAID). In close partnership with Ukraine, USAID will work to improve the lives of the Ukrainian people," the U.S. Embassy said in a statement on April 20.
The additional resources will be used to address key development challenges in Ukraine. In particular, US$34 million is allocated for expanding the country's economic growth and improving Ukrainians' health.
Read alsoU.S. authorities list key reforms for Ukraine to raise American investmentThis refers to the support of Ukraine's recovery from the COVID-19 pandemic by improving essential health services for Ukrainians; improvement of transparency and expanding economic opportunities in energy, agriculture, and finance to increase investor confidence, attract investment, and improve economic resilience of small and medium enterprises; and support in the development of a land market to drive economic growth and investment in the agrarian sector.
In addition, US$14 million will be used to enhance anti-corruption efforts, strengthen reforms and safeguard anti-corruption institutions to counter entrenched interests and ensure all of Ukraine's resources benefit the Ukrainian people; reduce corrupt practices in the health sector and facilitate Ukraine's purchases of vital medicines to reduce informal payments by patients and provide access to less expensive, quality medicines; and support the continued development of online e-government platforms that simplify access to services and streamline how Ukrainians receive their pensions, unemployment benefits, and more.
Also, US$63 million is allocated to counter Russian aggression, protect human rights and ensure access to justice for the Ukrainians affected by Kremlin-backed aggression in Crimea and Donbas; reduce Ukraine's energy and economic dependence on Russia by advancing connections to Europe's energy grid and strengthening businesses in the East; and expand citizen access to high-quality, unbiased information to counter malign influence and disinformation, support European integration, and strengthen democratic processes.
Read alsoBiden reiterates U.S. support for Ukraine (Video)Another US$44 million will be provided to strengthen democracy and governance, expand judicial reform to develop a more independent system that guarantees rule of law and equal access to justice so that Ukrainians can feel confident in a more equitable, impartial, and fair judicial system; strengthen newly consolidated communities and expand quality service provision to their residents to advance Ukraine's decentralization reform efforts; and encourage youth leadership, innovation, and engagement in building a democratic, pluralistic, and European-leaning Ukraine.
IMF assistance for global economic recovery
The International Monetary Fund is discussing the possibility of allocating Special Drawing Rights (SDRs) in the amount of US$650 billion to revive global economy post coronacrisis.
According to IMF Managing Director Kristalina Georgieva, such assistance will provide additional liquidity to the global economic system by replenishing reserve assets of 190 member countries.
IMF and Ukraine
- On June 9, 2020, the IMF's Executive Board adopted an 18-month Stand-By Arrangement (SBA) worth SDR 3.6 billion, or about US$5 billion, aimed at helping Ukraine overcome the consequences of the COVID-19 pandemic.
- On June 12, Ukraine received the first IMF disbursement worth US$2.1 billion under the SBA.
- In late November, the Finance Ministry reported on the successful completion of talks with the IMF on benchmarks of the draft budget for 2021, which was one of the major prerequisites for starting the SBA review.
- On January 11, an IMF mission resumed work in Kyiv, they worked until February 12 but departed without issuing any decision on the SBA review.
- On April 12, Governor of the National Bank of Ukraine Kyrylo Shevchenko said Ukraine might receive US$2.7 billion from the International Monetary Fund.
- On April 19, Ukrainian Finance Minister Serhiy Marchenko said Ukraine was proposing that the volume of the following tranches be revised.
